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Ask Sallie: Why Would You Want to Invest for Impact? (Video)

By Sallie Krawcheck

Impact investing is just making choices that align your investment dollars with the values you believe in. So why do some people pass it by? Sallie breaks it down.


Sallie’s answer:

A question I often get is, “Sallie, why would I want to invest for impact?” Why wouldn’t you want to invest for impact? Why wouldn’t you want to invest in companies that are doing right by the environment, that have a strong stance on social issues like human rights, that have strong corporate governance? The answer often comes back, “But you have to give up return for that, don’t you? And how much return am I going to give up?” That, in my opinion, is dated thinking.

Let me take one example. One of our favorites at Ellevest, gender lens investing — investing with an eye towards the composition of the board, the leadership team, the company. When the research tells us the diverse leadership teams lead to higher returns — not by a little, by a lot. Returns on equity, lower risk, greater innovation, greater employee engagement, greater customer engagement, that diverse teams outperform “smarter” teams.

But then somehow, you have to give up return on the stocks, in order to invest in them? Outdated thinking.


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The information provided should not be relied upon as investment advice or recommendations, does not constitute a solicitation to buy or sell securities and should not be considered specific legal, investment or tax advice.

The information provided does not take into account the specific objectives, financial situation or particular needs of any specific person.

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Sallie Krawcheck

Sallie Krawcheck is the Co-Founder & CEO of Ellevest. Her life’s mission is to help women to reach their financial and professional goals.